The demand will be _____ if there is no change in the demand of the commodity inspite of the change in the price of the commodity.
Perfectly elastic
Elastic
Perfectly inelastic
Inelastic
A state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand is
Unity
For which product is the income elasticity of demand most likely to be negative?
Computer software
Used clothing
Basket balls
Bread
In figure, a unit elastic demand curve is shown by
a
b
c
d
Under which one of the following circumstances will the firm have to absorb all the increase in indirect tax itself, being unable to pass on any of it to the consumer?
Perfectly inelastic demand
Perfectly elastic demand
Unit elastic demand
Relatively elastic demand
Change in the demand of a commodity due to change in the price of the substitute is an example of
Cross elasticity
Price elasticity
Income elasticity
The price elasticity of demand generally tends to be:
Smaller in the long tun than in the shot run
Smaller in the short run than in the long run
Un related to the length of time
Larger in the short run than in the long run.
If the demand of the commodity changes at faster rates than change in the price of the commodity, the demand of the commodity will be known as
Revenues from the sale of a good will decrease if
Income increases and the good is normal
The price rises and demand is elastic
The price rises and demand is inelastic
Income falls and the good is interior
It is a case of ______ if demand of the commodity changes with the change in price.
All the above
